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Business

If the Securities and Exchange Commission was hoping for quick action against Robert C. Morgan, there are signs it won’t get its way. The federal agency last month filed a securities fraud lawsuit against the Rochester developer, accusing him of running a “Ponzi-scheme-like" operation that used newer investments to pay off earlier investors and loans instead of buying p…

Business

A federal judge on Wednesday denied a request by the U.S. Securities and Exchange Commission to freeze the assets of Rochester developer Robert C. Morgan as the government pursues its securities fraud case against him. But U.S. District Court Judge Elizabeth Wolford allowed other protections, including issuing a temporary restraining order barring litigation against Mor…

Watchdog

Mike Donoghue has known Rochester developer Robert Morgan for more than a decade, as a personal friend and a partner in a relocation business. So it was only natural five years ago for the owner and president of Rochester-based Premium Mortgage to put $500,000 of his own money into investment funds that Morgan had just started. "I knew he had funds, and I asked if I co…

Business

A proposed deal to sell the management of Robert C. Morgan's apartment communities to a Virginia company has fallen through. Norfolk, Va.-based Harbor Group International had been in talks with Morgan Communities to acquire the management rights to Morgan's 140 properties in 14 states. The potential deal was intended to "stabilize" the Morgan portfolio of 36,000 apar…

Buffalo

Rochester developer Robert C. Morgan is facing criminal charges and a separate federal lawsuit accusing him of mortgage, insurance and securities fraud. Now, an attempt by the Securities and Exchange Commission to freeze Morgan's assets has made it difficult for him to retain a defense team, attorney Joel M. Cohen told a federal magistrate on Wednesday. Morgan, found…

Business

One of the nation's largest commercial banks is now trying to foreclose on two of Robert C. Morgan's apartment complexes in upstate New York – including the Raintree Island Apartments in the Town of Tonawanda – even as a federal grand jury indicted Morgan and his finance director on mortgage and insurance fraud charges. U.S. Bank, a subsidiary of Minneapolis-based U.S. …

Business

The U.S. Attorney's Office wants to seize two Buffalo apartment complexes as part of its criminal case against Rochester developer Robert C. Morgan and three other defendants. The Securities and Exchange Commission wants to freeze Morgan's assets — including an investment fund that holds a loan for Morgan's interest in a redevelopment project at Gates Circle. One com…

Business

A 114-count federal indictment unsealed Wednesday against Robert Morgan, Michael Tremiti, Todd Morgan and Frank Giacobbe alleges crimes were committed from 2007 through 2019 involving $285.65 million in mortgage loans in Buffalo, Rochester and Syracuse areas, as well as in Pennsylvania and Indiana. The charges carry a maximum penalty of 30 years in prison and fine of more …

Watchdog

Eighteen months ago, the network of companies run by Robert C. Morgan was one of the fastest-growing apartment owners in Western New York. The Morgan companies had a stake in four out of every 10 new apartments under construction or planned around Buffalo. Now, with two executives pleading guilty to federal charges and another under indictment, the once-rapidly growi…

Business

The No. 2 executive at Rochester-based Morgan Management and Morgan Communities pleaded guilty Monday to federal fraud charges for artificially inflating insurance costs for damages on Morgan properties. And he blamed his boss – Robert C. Morgan – for making him do it. Scott W. Cresswell, 59, of Ionia, N.Y., admitted in federal court in Buffalo to conspiracy to commi…

Business

Rochester developer Robert C. Morgan's problems in Buffalo just got worse. The special loan servicer handling the $27.8 million commercial mortgage on the Raintree Island Apartments in the City of Tonawanda this week declared the loan in default. The firm cited "false or misleading" financial statements, claims or other documents that Morgan's company provided to jus…

Business

A lender for a Town of Tonawanda apartment complex whose owner is at the center of a federal mortgage fraud investigation wants to foreclose on the property after an auditor determined it also received false information. SteepRock Capital, in court documents, called loans for Raintree Island Apartments "toxic" because of the criminal case and accused the owners of provi…

Buffalo

Robert C. Morgan's brother is suing him. Two of his company's loans are in danger of imminent default. And the developer faces a new hurdle if he wants to borrow money again. Strain is showing at Morgan Management, the Pittsford-based real estate empire with two executives facing federal fraud charges. Morgan Management in recent weeks sold four apartment complexes i…

Amherst

The federal fraud indictment that points an accusatory finger at two executives of Rochester's Morgan Management and two mortgage brokers also creates unwanted attention for two other players in Buffalo's real estate industry. While Brett Fitzpatrick and Aaron Siegel have not been charged or even named, last week's indictment alleges fraud occurred with one of their pro…

Business

The last of four Buffalo and Rochester defendants charged in an elaborate scheme to defraud lenders and investors out of millions of dollars in commercial real estate loans pleaded not guilty Tuesday morning to bank and wire fraud. Kevin Morgan, a vice president at Rochester-based Morgan Management and Morgan Communities, was arraigned before U.S. Magistrate Judge Kenne…